(ThyBlackMan.com) There are so many facets to running a successful business, that one person simply can’t manage it all on their own. While many entrepreneurs start off running the show by themselves to save money and resources, when their business starts to grow, the need for help also increases. The truth is, no matter how intelligent you are and how many skills you have, you only have 24 hours in a day and a LOT to get done.
Hiring Staff
Hiring employees is ultimately one of the first solutions for an expanding business. The more helping hands you have on board, the easier it is for you to provide the best products and/or services to your target audience. If you’re thinking about hiring a few helping hands, there are some things you must know ahead of time.
What must be clearly understood about hiring staff is that you can’t just put up an advertisement today and pay someone to work for you tomorrow. There are steps that must be taken, rules that must be followed, and guidelines in which you must be in compliance with.
Getting Help
Many new business owners or owners looking to hire employees for the first time, consult with professional payroll and tax professionals for help. ADP employment tax & compliance services, for instance, helps business owners make effective decisions when it comes to hiring, payroll, and tax obligations. This is, of course, optional, but highly recommended in the first few years of hiring employ
ees to ensure you remain in compliance and don’t wind up in serious trouble with state or federal government. If you are not fully up for the task, there are always law firms willing to assist. Many employs top lawyers, such as an Alex Gotch who is highly thought of, and has an immaculate record of service.
Before Hiring an Employee
Whether you decide to enlist the help of a tax and payroll professional or not, it is important that you follow these steps prior to hiring your first employee:
- Obtain an Employer Identification Number
Before hiring employees (and in some cases, before you start your business) you must have an employee identification number (EIN). This number will need to be entered on all tax documents that are submitted to the IRS.
- Register at the Local Labor Department
Once you start hiring employees you’re going to be responsible for paying employer taxes such as state unemployment tax. You’ll need to forward these payments to the state’s unemployment compensation fund. Therefore, you’ll need to be registered for easy payment distribution.
- Obtain Workers’ Compensation Insurance
You will need workers’ compensation insurance coverage to protect your employees (and your company) in the event that someone is injured on the job. This is recommended and in some instances mandatory to have.
- Establish a Payroll System
You’re going to need to withhold a certain portion of each employee’s check prior to depositing it into their accounts. As an employer, you will also be responsible for paying social security and Medicare taxes. To do this, you will need to set up a payroll system that automatically makes the deductions and payments each pay period
- Post Mandatory Notices
Many government agencies require employers to display notices with pertinent information for their staff in a general location. This may include things like company policies, employee rights, and so forth. The department of Labor can give you an idea of which posters you need to have displayed.
- Employee Workplace Safety Procedures
Every employer has a responsibility to comply with OSHA (Occupational Safety and Health Act). You will not only need to provide your staff with a safe and decent environment to work in, but you’ll need to provide training, posts signs, and set up procedures that will keep your staff safe in the event of an emergency or accident. Have your employees complete the OSHA 10 online to make sure everyone is aware of general safety procedures.
- Employee Handbooks
Though this is not a requirement, employee handbooks are great to consider. They will help your staff to understand corporate policies and give them a guide to reference if necessary. Having your employees sign that they’ve received and read the handbook is also an easy way to hold them accountable for their actions while at work.
- Employee Benefits
What benefits and incentives are you going to offer your employees? This will all need to be factored into your planning. Reviewing various healthcare plans, retirement savings accounts, and other benefits will be important before hiring anyone.
- Advertising, Screening, & Interviewing
Last, but certainly not least among the things you have to do to hire an employee would be to advertise the position, screen incoming applicants, and lastly, perform an interview. This alone can take time and should be planned out carefully.
There’s no doubt about it. Employees can certainly help you manage a growing business and all the responsibilities that go along with it. However, before you can simply hire someone, you have to do your due diligence. Working with an accounting, payroll, or financial professional beforehand can ensure that you’ve dotted your eyes and crossed your tees. Once you’ve gotten all of the logistics out of the way, hiring your first employee is a simple as interviewing candidates and selecting those best for the job.
Staff Writer; Bobby Jackson
